A Study Of Interaction Mechanisms Of Environmental Regulation On Industrial Restructure In China

With global environmental degradation and the gradual exhaustion of natural resources, more and more countries in the world are made to begin to pay attention environmental issues, by developing and implementing environmental regulation of many different jurisdictional areas, to coordinate the contradictions between domestic economic growth and environmental protection to get economic sustainable development. At present, China is vigorously promoting the development of circular economy and building of resource-saving and environment-friendly society, and puts forward policies and measures of environmental regulation. And China's industrial structure has undergone major changes. Whether does environmental regulation have effects on industrial restructuring? How is the mechanism? These are starting point and foothold of our study.Based on previous studies, we study on the interaction mechanisms between China's environmental regulation and industrial structure adjustment in this paper. Firstly, we do empirical observation on the status of environmental regulation and the evolution of industrial structure by comparative analysis and statistical analysis. Secondly, we do theoretical analysis of the interaction mechanisms between China's environmental regulation and industrial structure adjustment using the game models and graphics display method. Then, the previous paper, above on empirical observation and theoretical analysis, we use China's panel data from 1997 to 2008 to do empirical test of effect of environmental regulations on industrial structure adjustment with unit root test, cointegration test and regression analysis. Finally, relevant policy recommendations are proposed.The empirical results show that the impacts of per capita GDP, total employment, fixed assets investment, research funding of environmental protection, sewage fees, the number of letters of environmental pollution, investments of industrial pollution control, the number of environmental administrative penalty cases on industrial structure are significant, and the remaining variables are not significant. Among them, the effect of quadratic of number of sewage licenses on the industrial structure is significantly positive, the effect of quadratic of rate of environmental impact assessment system is significantly negative, and the effect of quadratic of sewage fees on the industrial structure is also significantly positive, that is to say, the influence of sewage licenses system on industrial structure is U, the influence of environmental impact assessment system is the inverted U-and the influence of sewage fees is also U-. Research funding of environmental protection, investment of industrial pollution control, the number of letters of environmental pollution, have positive impact on industrial structure. In addition, the impact of actual number of persons in China's environmental protection institution on industrial restructuring is significantly negative. Only the number of letters of environmental pollution, investments of industrial pollution control, the rate of environmental impact assessment system and the number of environmental administrative penalty cases have the same impacts on industrial structure in the three regions of east, mediate, west, others are different. Based on these results, some policy recommendations are proposed:①Strengthen incentive and restraint to subject of environmental regulation;②Make perfect information transmission mechanism and promote transparency and public of information;③Strengthen environmental law enforcement and security environmental regulation to work smoothly;④Encourages diversified investment and increase investment of environmental protection;⑤Reform environmental regulation institutions;⑥Improve the system of environmental regulation method.